The manhole is late and the trench is still open
The pipe is laid, the hole is dug, and the whole run stops because a manhole barrel and a frame and grate are still weeks out at the plant.
A vertical trade stages its material dry in a conex and waits for the call. Excavation has no such pause: the run is already open, so shoring boxes, trench plates, dewatering pumps, traffic control, and a backfill crew on standby keep accruing every single day, and none of it is a pay item on the schedule of values. Base doesn't go down until the underground is in and tested, so one late casting becomes the paving date, and the paving date comes back at you as a delay claim.
The size of it
Open-trench cost runs into the thousands a day in rented shoring, pumps, plates, and idle crew, with no line to bill it against. Then the schedule hit turns into paving liquidated damages you never priced.
Precast drainage structures, box culverts, frames and grates, and pipe specials like bends, tees, hydrants, and valves get built to your plan sheet, not pulled off a shelf. Lead times commonly run 8 to 16 weeks, and even commodity ductile iron runs stock to 6 weeks after receipt of order per McWane, with specials longer. Most owners find out the hard way, on the morning the crew reaches the structure location and there's nothing to set. From that morning forward the trench stays open, the rental clock keeps running, and the storm and sanitary system is the hold point for base and paving, so the slip hits the GC's schedule too.
Three moves, in order
Step 06: Project management
Billing dates, change orders, and notices, written as standards that work without anyone chasing them.
What else costs excavation contractors money
The same mechanism in other trades
What excavation owners ask
How do I charge for waiting on precast structures to be delivered?
The pipe is laid, the hole is dug, and the whole run stops because a manhole barrel and a frame and grate are still weeks out at the plant.
What does it cost?
Open-trench cost runs into the thousands a day in rented shoring, pumps, plates, and idle crew, with no line to bill it against. Then the schedule hit turns into paving liquidated damages you never priced.
What do I do first?
Pull every precast structure, casting, and pipe special off the plans the week you're awarded, and get submittals to the supplier before a machine moves.
What are excavation contractors supposed to be making?
Excavation runs 21% gross margin, 14% overhead and 7% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade is right on it. The CFOS target is 10.5%.
Which part of the system fixes it?
The step is number 06, project management. Billing dates, change orders, and notices, written as standards that work without anyone chasing them. It comes from chapter 6 of CONTROL: The Construction Financial Operating System.
Everything on this page is something you can install yourself, andCONTROL is the order to do it in. If you would rather buy the finished result, SPM The Construction CFO does this work for excavation contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, run by the same author.
Wrote CONTROL, the 8 step system behind these figures. More about the author.